us sues to block cemexs rinker takeover

DOJ Would Require Cemex to Divest 39 Facilities in Ariz., Fla. if Takeover of Rinker Succeeds
WASHINGTON (AP) -- U.S. regulators filed a lawsuit on Wednesday seeking to block a $12 billion hostile takeover bid by Mexican cement maker Cemex SAB de CV for Australia's Rinker Group Ltd.
At the same time, the Justice Department filed a proposed consent decree that, if approved, would resolve the lawsuit and the department's competitive concerns. It would require Cemex to divest more than three dozen facilities in two states if the takeover bid succeeds.
Without the divestitures of 39 ready mix concrete, concrete block and aggregate facilities in Arizona and Florida, it would substantially reduce competition in those states, according to the Justice Department.
The combination of Cemex and Rinker, Australia's largest maker of building materials, would create the world's largest supplier of aggregate for concrete construction. But Chatswood, Australia-based Rinker's board in November rejected the $13-per-share bid as "opportunistic and far too low," a month after it was offered.
Cemex last month extended the offer it has called "full and fair" until April 27. If completed, it would be the biggest takeover in Australian corporate history, and would help Monterrey, Mexico-based Cemex expand its presence in southern U.S. states and add businesses in Australia and China.
American Depositary Shares of Cemex fell 59 cents to close at $32.65, while Rinker dipped 9 cents to end at $73.69, both on the New York Stock Exchange.